As the shadow of Middle East geopolitical volatility looms over global energy markets, the Minister of Natural Resources and Energy, Prince Lonkhokhela, has hailed His Majesty King Mswati III’s long-standing vision for a National Strategic Oil Reserve.
Speaking with urgency following a briefing with oil industry majors yesterday, the Minister highlighted that the King’s foresight has transformed from a strategic goal into an immediate survival necessity for Eswatini.
“We need it as soon as yesterday,” said the Minister. “If there was no need seen for it before, now is certainly the time. This has always been His Majesty’s vision for the nation, and the current global tensions have proven just how vital that foresight was.”
Addressing potential skepticism regarding the massive E5.2 billion (approx. $280 million) price tag, Prince Lonkhokhela assured that the Phuzumoya Strategic Fuel Reserve Facility is a functional investment in the country’s sovereignty.
“This will not be a white elephant,” the Minister added. “This is a working asset designed to protect our economy. We are not building this to sit idle; we are building a shield that ensures Eswatini remains mobile and productive, regardless of what happens in international markets.”
The project, a collaboration with the Republic of China (Taiwan), is engineered to store 80 million litres of fuel, split equally between petrol and diesel. Once operational, this will provide the Kingdom with a 60-day emergency buffer, ensuring that the wheels of industry do not grind to a halt even if international supply lines are severed.
Currently, Eswatini is in a vulnerable position, importing 100% of its fuel through the Republic of South Africa and Mozambique.
With major regional suppliers currently plagued by international constraints and extended delivery lead times, the Minister noted that Eswatini can no longer afford to be a spectator to global shocks.
While the project is a massive infrastructure undertaking led by Taiwan’s CECI Engineering Consultants and Overseas Electrical Engineering (OEE), the Minister has ensured the local economy feels the immediate benefit.
A strict 30% subcontracting quota has been mandated, ensuring that at least E1.5 billion of the project value is funneled directly into the pockets of local Eswatini companies and workers.
Currently, site readiness, including fencing and borehole drilling is complete, with earthworks now underway on a 36-month construction program.
The Minister concluded by reiterating that the Phuzumoya site is the foundation for a more self-reliant Eswatini. With the recent closure of several refineries across Southern Africa, the facility positions the Kingdom to eventually become a SADC fuel hub, with the potential for a domestic refinery on the horizon.